Not Buying It

February 2018

ATLANTA, GEORGIA

Delta announced the purchase of 100 Airbus A321neo passenger planes with an option to buy 100 more. The list price for the single-aisle, 197-seat planes would be $12.7 billion, but major carriers are expected to enjoy discounts on deals like this. Powered with Pratt & Whitney engines, the new planes are expected to consume 40% less fuel than the 1990s McDonnell Douglas MD-90s, Boeing 757s, and Airbus A320s they will be replacing. Deliveries will begin in 2020. The move is viewed as another slight to Boeing, whose 737 Max 10 design had also been in the running for a contract. Following Delta’s purchase of 75 C Series jets from Canadian manufacturer Bombardier, Boeing filed a complaint with the United States Commerce Department, charging the jets were priced below the cost of production due to illegal subsidies. The commerce department subsequently said it would impose tariffs totaling 300%, which Delta, denying the legitimacy of Boeing’s complaint, says it will not pay. Boeing has 367 orders from 16 other customers for the 737 Max 10.